Four former economic advisers to President Donald Trump's presidential campaign are urging him to drop plans for a complete tax reform for now and push through a quick corporate tax cut.
Larry Kudlow, Steve Forbes, Arthur Laffer, and Stephen Moore made their comments in a column for The New York Times. The four are co-founders of the Committee to Unleash Prosperity.
"In the aftermath of the healthcare blowup, President Trump and the Republicans need a legislative victory," they say in the column. "Tax reform probably should have gone first, but now is the time to move it forward with urgency.
"We advised President Trump during his election campaign, and we believe the Republican Party's lesson for tax reform is this: Don't try to rewrite the entire tax code in one bill."
They maintain the main goal of the administration regarding tax reform "should be to fix the federal corporate and small-business tax system, which has made America increasingly uncompetitive in global markets and has reduced jobs and wages here at home."
They recommend cutting the federal corporate and small-business highest tax rate to 15 percent from 35 percent and allowing businesses to deduct the full cost of their capital purchases.
Plus, they suggest a low tax on the repatriation of foreign profits brought back to the U.S.
"This could attract more than $2 trillion to these shores, raising billions for the Treasury, while creating new jobs and adding to the United States' gross domestic product," they wrote.
As part of the bill, and in an effort to win over Democratic support, a special fund could be created from the tax money brought in from repatriation of foreign profits, they said. That money could be used to rebuild America's roads, airports, pipelines, and modernize broadband access, the four added.
Plus, the former advisers called for Republicans to abandon talk of a border-adjustable tax, which they called a "poison pill for the tax plan."
"Republicans need to act with some degree of urgency," the four say in the column. "The financial markets and American businesses are starting to get jittery over the prospect that a tax cut won't get done this year."
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